When China sneezes, middle east states get the cold

Abstract

The main objective of this study is to extend an economic perspective on the outbreak of COVID-19 pandemic in the Middle East economies. The COVID-19 pandemic, which was initially considered as a Chinese-centric problem, has now affected more than 200 countries worldwide. The impact of the virus on human sufferings is unaccountable. However, economists consider the repercussion of the outbreak as contagious economically as it has been medically. Throughout this paper, we mainly address a few important research questions about the economic aspects of COVID-19. We further highlight three critical channels through which the economic effect of the outbreak can be assessed. Finally, we explain the case of Middle East states and demonstrate the pathways that explain the economic repercussion of this global pandemic on the region. We conclude the paper by providing a few policy recommendations for the Middle East economies to fight the crisis.